National Development Plan requires N350trn – FG

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NigeriaMinister of State, Finance Budget and National Planning, Mr Clement Agba.

…Announces date for NES#27

By Emmanuel Elebeke

Federal Government says it requires  about N350 trillion to fund National Development Plan (NDP) for 2021 through 2025.

At a joint press briefing by the NESG and Federal Government on Wednesday in Abuja, the Ministry of State for Finance, Budget and National Planning, Prince Clem Agba said the scheduled Summit would hold on October 25-26, 2021

 Minister of State for Budget and National Planning, Prince Clem Agba, disclosed this at a joint press briefing by the NESG and Federal Government on Wednesday to kickoff the 2021 edition of the National  Economic Summit (#27NES) scheduled to hold from October 25th-26th, 2021  in Abuja.

Agba, who said the N350 trillion targeted fund has already been  captured in the 2022 Budget, explained that out of the amount, N300 trillion is expected to come from the  private sector while the rest of N50 trillion will come from the federal government.

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“The N50 trillion is with regard  to funding requirements for the National Development Plan capital project for 2021 to 2025. With the projects that have been projected and costed, there will be a requirement of about N350 trillion and out  of this,  N300 trillion is expected to flow in from the organised private sector in terms of investment and all of that. And that the government will be contributing about N50 trillion. The government here is federal and state. The portion of government is about N30 trillion. For the state (sub-nationals) it is about N20 trillion” he said.

It will be recalled that the 27th Economic Summit was earlier slated for October 25, 2021. The minister had on Wednesday, 28th July, 2021, the minister inaugurated the joint Planning Committee (JPC) for the 27th Summit. The inauguration midwived five sub-committees: Technical; fundraising; and mobilization; media and publicity; editorial and event planning to ensure effective delivery of the summit.

Agba expressed satisfaction with the gradual recovery of the economy and assured that the economy would continue in that positive trajectory.

“What I said was that for 17 months, inflation was rising and in the last five months it is still on a downward trend. For 17 years,  it rose to 18.7 per cent. Currently,  it is at 17.1 per cent. It is declining. And  in the last one month, inflation also reduced for the first time. It shows that we are moving in the positive trajectory” he said.

For him, the measures put in place by government were enough to put Nigeria on a positive economic trajectory.

“Measures put in place by the government of Nigeria have ensured that both health and economic data have continued to be on the positive trajectory. Nigeria’s Gross Domestic Product (GDP) grew by 5.01 per cent (year-on-year) in real terms in the second quarter of 2021. The Q2 2021 growth rate was higher than the -6.10 per cent  decline recorded in Q2 2020 and the 0.51 per cent growth recorded in Q1 2021 year-on-year, indicating the return of business and economic activity  levels seen prior to the nationwide implementation of COVID-19 related restrictions. 

“To sustain this growth trajectory, the  Special-Industrial Processing Zones (SAPZs),  an Initiative by African Development Bank Group, public and private sector will be established in all 36 states of Nigeria including FCT.  It is a 10- year development programme to be financed under thea African Development Bank (AFDB)  which will guarantee steady annual growth rate of about 5 per cent over the next 10 years from year 2023.

“The private sector has capacity if pursued with desired commitment by the Public and Private Sector to provide  25 million permanent employments and 25 million housing. The plan amongst others, is to add at least US$150 billion to the country’s foreign reserves cumulatively from non-oil exports over the next 10 years; create at least 500,000 additional export linked jobs annually due,  principally to increase in productive export activities; lift at least 10 million Nigerians out of poverty and empower each state and its people by integrating them into the export value chain. These efforts/initiatives, therefore, would unlock the potentials of each state in the development and promotion of at least one crop for export,” Agba said.

In his remarks, the Chairman of Nigerian Economic Summit  (NES #27), Mr Asue Ighodalo,  who regretted the earlier postponement of the summit date, descried the huge  economic woes currently facing the country which include, currency devaluation, foreign exchange shortages, trade imbalances, budget deficits, mounting debts, high inflation especially food inflation and food insecurity.

He further listed low manufacturing capacity, port inaccessibility,  delays and high costs of moving goods and machinery through the ports as other economic challenges facing the nation.
‘‘At NESG, we are pleased with government for heading to recommendations of previous summits,’’ he said.

The summit is expected to provide a platform for effective collaboration between the private and public sectors and also bring together development partners, the Civil Society and representatives of the academia as well as provides participants the unique opportunity to deliberate on contemporary economic and social issues.

The Summit with the theme: Securing the future: The Fierce  Urgency of Now, will seek to explore potential opportunities that will accelerate economic development and build on conversations from last year’s summit, which emphasized the importance of harnessing critical and strategic partnership to navigate the economy towards recovery and resilience.

The theme is designed to assess the current state of the Nigerian economy; foster a people-centered approach to refocused economic, social, and political challenges; galvanize a renewed commitment of stakeholders to urgently and actively prioritize the pursuit of economic growth that can sustainably create jobs and lift millions out of poverty.

According to Agba, the summit discussions will be designed around five sub-themes:  high and sustained growth; quality of life; national security political economy and digital transformation.

It is also expected to enable Nigeria to realize its economic potentials on the global stage and agree on compact that compels stakeholders to take critical and immediate actions and institute efficient monitoring mechanisms to ensure key recommendations at the NES #27.

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